Hess Midstream Partners (NYSE:HESM) Shares Gap Down – Here’s What Happened

Hess Midstream Partners LP (NYSE:HESM) gapped down prior to trading on Wednesday. The stock had previously closed at $38.69, but opened at $36.05. Hess Midstream Partners shares last traded at $32.6170, with a volume of 2,488,400 shares traded.

Key Hess Midstream Partners News

Here are the key news stories impacting Hess Midstream Partners this week:

• Positive Sentiment: The Chevron agreement gives HESM ownership of DJ Basin midstream assets, expanding its operations beyond the Bakken. The transaction also extends Chevron’s Bakken contracts, reduces Chevron’s expected midstream costs by approximately 50%, and should provide HESM with longer-term contracted cash flows. Hess Midstream Stock Plunges, but the Chevron Deal Has a Silver Lining
• Positive Sentiment: Fewer units outstanding following the ownership restructuring could support per-unit results over time, while the addition of DJ Basin assets creates a potential platform for regional growth. Hess Midstream Becomes Independent With DJ Basin Assets and New Ownership
• Neutral Sentiment: HESM is becoming more independent through the transfer of Chevron’s ownership interests and related assets. The new structure may improve strategic flexibility, but investors are still assessing the implications for sponsorship, leverage and future capital allocation. Hess Midstream Discusses DJ Basin Asset Acquisition and Business Strategy
• Neutral Sentiment: Analyst commentary comparing HESM with other energy-income securities provides context on valuation and risk, but does not represent a new company-specific catalyst. Contrasting San Juan Basin Royalty Trust and Hess Midstream Partners
• Negative Sentiment: The immediate market reaction is negative because management expects 2027 adjusted EBITDA of approximately $850 million to $950 million, reflecting lower near-term earnings under the revised Bakken arrangements. Shares were reported down more than 16% during Wednesday trading. Hess Midstream Stock Drops on Chevron Restructuring and Lower 2027 Outlook
• Negative Sentiment: Put-option volume surged to 22,237 contracts versus typical daily volume of 812, signaling heightened bearish hedging or speculation. This activity can amplify short-term volatility but does not by itself confirm a fundamental deterioration.

Analysts Set New Price Targets

A number of equities analysts recently commented on HESM shares. Weiss Ratings restated a “buy (b)” rating on shares of Hess Midstream Partners in a report on Monday, September 21st. JPMorgan Chase & Co. downgraded shares of Hess Midstream Partners from a “neutral” rating to an “underweight” rating and set a $39.00 price objective on the stock. in a research report on Friday, October 2nd. Finally, Morgan Stanley restated an “underweight” rating and issued a $39.00 price objective on shares of Hess Midstream Partners in a report on Tuesday, July 21st. One equities research analyst has rated the stock with a Buy rating, three have given a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Reduce” and an average target price of $37.00.

Hess Midstream Partners Price Performance

The stock has a market cap of $7.02 billion, a PE ratio of 11.74 and a beta of 0.58. The business has a fifty day simple moving average of $39.37 and a two-hundred day simple moving average of $38.99. The company has a current ratio of 0.77, a quick ratio of 0.77 and a debt-to-equity ratio of 9.39.

Hess Midstream Partners (NYSE:HESM) last released its quarterly earnings results on Monday, August 3rd. The company reported $0.75 earnings per share for the quarter, beating the consensus estimate of $0.67 by $0.08. The company had revenue of $399.00 million for the quarter, compared to analyst estimates of $395.96 million. Hess Midstream Partners had a return on equity of 92.18% and a net margin of 23.23%.The firm’s revenue was down 3.7% on a year-over-year basis. During the same period in the previous year, the company posted $0.74 earnings per share. Research analysts forecast that Hess Midstream Partners LP will post 2.94 earnings per share for the current year.

Hess Midstream Partners Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 14th. Stockholders of record on Thursday, August 6th were given a $0.7888 dividend. The ex-dividend date of this dividend was Thursday, August 6th. This represents a $3.16 dividend on an annualized basis and a dividend yield of 9.3%. This is a boost from Hess Midstream Partners’s previous quarterly dividend of $0.7792. Hess Midstream Partners’s payout ratio is currently 108.62%.

Institutional Investors Weigh In On Hess Midstream Partners

Hedge funds and other institutional investors have recently bought and sold shares of the business. Farther Finance Advisors LLC lifted its holdings in shares of Hess Midstream Partners by 115.0% during the third quarter. Farther Finance Advisors LLC now owns 14,016 shares of the company’s stock valued at $524,000 after purchasing an additional 7,497 shares during the last quarter. Envestnet Asset Management Inc. increased its position in Hess Midstream Partners by 0.8% during the 2nd quarter. Envestnet Asset Management Inc. now owns 147,778 shares of the company’s stock valued at $5,556,000 after buying an additional 1,203 shares in the last quarter. State Street Corp increased its position in Hess Midstream Partners by 38.0% during the 2nd quarter. State Street Corp now owns 365,577 shares of the company’s stock valued at $13,746,000 after buying an additional 100,611 shares in the last quarter. Tidal Investments LLC raised its stake in Hess Midstream Partners by 37.2% during the second quarter. Tidal Investments LLC now owns 7,881 shares of the company’s stock valued at $296,000 after buying an additional 2,138 shares during the last quarter. Finally, Integrated Wealth Concepts LLC purchased a new position in Hess Midstream Partners during the second quarter valued at $77,000. Hedge funds and other institutional investors own 98.97% of the company’s stock.

About Hess Midstream Partners

Hess Midstream Partners LP (NYSE:HESM) is a fee-based midstream energy company that owns and operates infrastructure supporting crude oil, natural gas and produced-water production in the Bakken Shale of North Dakota. The partnership primarily serves Hess Corp. and other producers operating in the region.

Its assets include systems for gathering and processing natural gas, gathering and transporting crude oil, and handling and disposing of produced water. Hess Midstream also provides storage, terminal and transportation services, helping connect production sites with downstream pipelines, rail facilities and other market outlets.

The company was formed to own midstream assets previously developed or operated by Hess and began trading publicly in 2017.